Everton has officially appealed the unprecedented 10-point deduction imposed by an independent commission for financial rule breaches, marking the largest penalty in Premier League history. The Toffees admitted the breach but expressed shock and disappointment at the severity of the punishment.
Everton's appeal will be heard by an appointed board before the end of the season. The points deduction dropped Everton from 14th to 19th place in the Premier League table, prompting protests from fans and concerns raised by regional politicians, including Mayor of Liverpool Steve Rotheram and Mayor for Greater Manchester Andy Burnham, an Everton season ticket-holder.
The independent commission determined that Everton's losses for the 2021-22 season amounted to £124.5 million, exceeding the £105 million limit for English top-flight clubs over three years. Everton argued that interest payments on loans for their new £760 million stadium should be considered permissible "add backs" for profit and sustainability calculations.
However, the commission disagreed, rejecting the club's claims of mitigating factors, including compliance with the Premier League process, the impact of the Russia-Ukraine war on the loss of sponsorship, and the pandemic's effect on the transfer market.
In addition to the Premier League penalty, Everton faces potential compensation claims from Burnley, Leeds, Nottingham Forest, Leicester, and Southampton. A ruling from May indicated that these clubs may have a case for compensation, as they were relegated over the past two seasons.
Clubs have 28 days from the ruling date to decide whether to pursue a claim, adding further financial uncertainty to Everton's situation. The appeal process will determine whether the initial penalty is fair or should be adjusted.